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What this task is

This task collects the executed separation agreement when the borrower has separate maintenance expense or similar support obligations that impact their financial profile. A separation agreement may:
  • Establish support payments before a divorce is finalized, and
  • Allocate responsibility for certain debts and expenses between the parties.

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When this task is required

This task is required when:
  • A liability is categorized as separate maintenance expense or similar, and
  • The underwriter must understand:
    • The amount and frequency of the obligation, and
    • The expected duration of the payments.
It may also be requested when the borrower discloses ongoing support or separation-related obligations outside of a final divorce decree.

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Why this task is required

As with other support obligations, separate maintenance can meaningfully affect:
  • The borrower’s monthly budget and DTI, and
  • The lender’s assessment of repayment capacity.
The separation agreement provides:
  • A legal framework that defines payment amounts and responsibilities.
  • Clarity on whether obligations are temporary, conditional, or long-term.
  • Documentation needed to comply with agency or investor guidelines for recurring obligations.
Without this agreement, the underwriter may have to assume a more conservative impact on the borrower’s liabilities or treat the file as incomplete.

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Documents needed to resolve this task

To satisfy this task, provide:
  • The complete, legible separation agreement, including:
    • All sections addressing financial obligations, support payments, and debt allocation.
    • Any amendments or modifications that alter the original terms.
  • If additional court orders or subsequent agreements modify support obligations, provide those documents as well.
These materials allow the underwriter to include any separation-related obligations in the borrower’s financial analysis accurately and in line with guidelines.